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Liberty Global B (LBTYB)
NASDAQ:LBTYB
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Liberty Global B
(NASDAQ:LBTYB)
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Rating:58Neutral
Price Target:
$13.00
▲(19.05% Upside)
Action:ReiteratedDate:02/18/26
The score is primarily constrained by weak financial performance driven by a large TTM loss and negative returns, partly offset by positive free cash flow and manageable leverage. Technicals are supportive with price above major moving averages and positive momentum indicators. Earnings-call takeaways are mixed: 2026 guidance is soft, but sizable strategic transactions, refinancing, and cost reductions provide medium-term upside potential. Valuation is a modest negative due to a negative P/E and no dividend yield data.
Positive Factors
Positive and improving free cash flow
Sustained positive free cash flow (~$1.45B TTM, +21% y/y) provides durable liquidity to fund capex, refinance maturing debt, and support M&A or asset monetization. Cash generation cushions the business through earnings volatility and underpins strategic flexibility over the medium term.
Manageable balance-sheet leverage
Debt roughly 0.7x equity signals a capital structure that is not extreme for telecommunications, giving room to absorb operating shocks, execute refinancing, and pursue strategic transactions without immediate solvency pressure. This structural headroom supports medium-term execution.
Strategic M&A and value-unlocking roadmap
Transformational transactions (VodafoneZiggo stake purchase, planned Ziggo listing) and targeted €1.0bn NPV synergies are structural catalysts. Consolidation and planned spin/listing can materially improve scale, operating leverage, and free cash flow run-rate if executed, benefiting longer-term returns.
Negative Factors
Deep recent profitability deterioration
A roughly -51% TTM net margin and large net loss represent a significant reversal in earnings quality and ROE. If losses persist this can erode equity, constrain reinvestment, and force heavier reliance on disposals or external financing, raising medium-term execution risk.
Operational declines and weak 2026 guidance at OpCos
Major operating companies forecast revenue and EBITDA declines in 2026, reflecting sustained competition and promotional intensity. Structural top-line contraction across key markets pressures scale economics and margin sustainability, complicating achievement of projected synergies and FCF targets.
Execution and regulatory contingencies on transactions
Key transactions and refinancing are contingent on regulatory approvals and market conditions. Delays, tougher credit markets, or undisclosed commercial terms could reduce expected proceeds or synergies, increasing the risk that strategic plans underdeliver and that projected deleveraging is delayed.
Liberty Global B (LBTYB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.14B
Dividend YieldN/A
Average Volume (3M)181.00
Price to Earnings (P/E)―
Beta (1Y)0.24
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees6,820
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-8.71
Shares Outstanding12,968,658
10 Day Avg. Volume151
30 Day Avg. Volume181
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.41
Price to Sales (P/S)0.82
P/FCF Ratio-32.60
Enterprise Value/Market Cap2.91
Enterprise Value/Revenue2.47
Enterprise Value/Gross Profit9.34
Enterprise Value/Ebitda11.24
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-1.73
Revenue Forecast (FY)$4.95B
Liberty Global B Business Overview & Revenue Model
Company DescriptionLiberty Global plc, together with its subsidiaries, provides broadband internet, video, fixed-line telephony, and mobile communications services to residential and business customers. It offers value-added broadband services, such as intelligent WiFi features; security; smart home, online storage solutions, and Web spaces; Connect Box, a set-top or Horizon box that delivers in-home Wi-Fi service; community Wi-Fi via routers in home, which provides access to the internet; and public Wi-Fi access points in train stations, hotels, bars, restaurants, and other public places. The company also provides various tiers of digital video programming and audio services, as well as digital video recorders and multimedia home gateway systems; and channels, including general entertainment, sports, movies, series, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. In addition, it offers postpaid and prepaid mobile services; circuit-switched telephony services; and personal call manager, unified messaging, and a second or third phone line at an incremental cost. Further, the company offers business services comprising voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home office, small business, and medium and large enterprises, as well as on a wholesale basis to other operators. It operates in the United Kingdom, Belgium, Switzerland, Ireland, Poland, Slovakia, and internationally. Liberty Global plc was founded in 2004 and is based in London, the United Kingdom.
How the Company Makes MoneyLiberty Global makes money primarily by (1) selling subscription-based connectivity and entertainment services and (2) earning income from investments and joint ventures.
1) Subscription and service revenue (core operating model)
- Broadband internet access: Recurring monthly fees for fixed broadband service are a primary revenue driver in markets where Liberty Global consolidates operations.
- Video/TV services: Revenue from pay-TV packages, channel bundles, and value-added video features (where offered), typically billed monthly.
- Fixed telephony: Monthly access charges and usage-based fees for fixed voice services (where offered).
- Mobile services: Revenue from mobile plans (postpaid/prepaid), device sales (where applicable), and related fees in markets where the company offers mobile service directly or through partnerships.
- Business-to-business connectivity: Revenue from selling broadband, voice, networking, and related managed services to small businesses and enterprises (where applicable).
- Installation, equipment, and other fees: One-time or periodic charges such as installation fees, modem/router or set-top equipment rentals, service upgrades, and late/payment-related fees.
2) Other operating income
- Advertising and content-related revenue: In some operating markets, the company may generate advertising revenue tied to its video platforms; if market-specific disclosure is not available here, null.
3) Investments, joint ventures, and asset monetization
- Equity earnings/dividends from joint ventures or affiliates: Liberty Global has historically used joint ventures and minority investments in European telecom assets; earnings may come through equity-method income, dividends, or distributions depending on structure.
- Gains/losses on disposals and transactions: Because Liberty Global has periodically bought, sold, or restructured telecom assets, it may realize proceeds and accounting gains from divestitures or transactions when they occur (not recurring operating revenue).
Key factors influencing earnings
- Customer base and churn: Revenue depends heavily on subscriber counts, retention, and the mix of services per customer (bundling/"multi-play").
- Pricing and product mix: Average revenue per user (ARPU), premium tiers (higher speeds, larger TV bundles), and mobile adoption affect top-line performance.
- Network investment and scale: Investment in fiber/coax upgrades and operating leverage in network operations can affect margins and cash flow.
Significant partnerships
- Specific current partnerships (e.g., named network-sharing, content, or mobile wholesale agreements) for Liberty Global B are not provided in this prompt; null.
Liberty Global B Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call combines several near-term operational headwinds (Q4 revenue and EBITDA declines across major OpCos, elevated commercial competition, and incremental 2026 investments that depress near-term EBITDA and free cash flow) with substantial strategic positives: two large transformational transactions (Vodafone stake acquisition and the Nexfibre/Substantial Group deal) intended to create scale, meaningful synergy potential (estimated ~EUR 1.0 billion for Ziggo combination), a planned 2027 public listing and spin-off of Ziggo, large refinancing actions (~USD 15 billion refinanced), dramatic corporate cost reductions (~75% net corporate spend reduction), and a focused growth portfolio with monetization potential. Management provided explicit 2026 guidance that incorporates investment-driven declines and showed clear liquidity and capital-allocation plans (cash targets, asset disposals, no primary equity raise). On balance, the strategic actions and financial-engineering (deleveraging roadmap, asset monetization plans, and cost reductions) are positioned to unlock significant shareholder value over the medium term, outweighing the near-term operational declines and execution/contingent risks.Q4-2025 Updates
Positive Updates
Strategic M&A to Unlock Telecom Value
Announced acquisition of Vodafone's 50% stake in VodafoneZiggo for EUR 1.0 billion cash plus 10% of new Ziggo Group equity, with intention to list Ziggo on Euronext in 2027 and spin 90% to Liberty Global shareholders. Management expects ~EUR 1.0 billion of NPV from operational synergies and incremental service revenues and targets ~4.5x leverage and ~USD 500 million of annual free cash flow by 2028.
Major U.K. Nexfibre / Substantial Group Transaction
Nexfibre (50/50 JV with InfraVia) to acquire Netomnia and Substantial Group creating a platform reaching ~8 million fiber homes by end-2027. Total equity injection ~GBP 1.0 billion (InfraVia GBP 850m; Liberty & Telefónica GBP 150m — Liberty direct cash responsibility GBP 75m) plus ~GBP 2.7 billion debt facility. Nexfibre will distribute ~GBP 2.0 billion (GBP 950m to Substantial, GBP 1.1bn to VMO2). VMO2 receives ~500k subscribers, capex avoidance NPV ~GBP 800m and managed services NPV ~GBP 400m; VMO2 gets a direct equity stake in Nexfibre 2.0.
Refinancing and Strong Treasury Activity
Refinanced close to USD 15 billion across credit silos, fully refinanced 2028 maturities at VMO2 and VodafoneZiggo via term loans, senior secured notes and private taps. Committed financing for Wyre at EUR 4.35 billion (contingent on approval). Consolidated cash ended FY2025 at USD 2.2 billion and pro forma cash expected around USD 1.5 billion at end-2026 after transactions and further disposals.
Corporate Restructuring and Cost Reduction
Reshaped corporate operating model and reduced net corporate spend by ~75% over the last 12 months. Liberty Services and Corporate closed 2025 at negative USD 130 million adjusted EBITDA, ~USD 20 million better than the USD 150 million target.
Delivered on Guidance Across OpCos
Operating companies in the U.K., Netherlands and Belgium delivered on full-year guidance metrics for 2025 despite headwinds. Management highlighted commercial and network momentum, improvement in Q4 performance across several OpCos and benefits from initial AI initiatives.
Liberty Growth Portfolio and Asset Progress
Liberty Growth fair market value ~USD 3.4 billion; portfolio concentrated (5 assets = 70% of value). Positive developments include Formula E progress, data centers (EdgeConneX and AtlasEdge) supporting >USD 1 billion year-end valuation, Egg Power securing GBP 400 million senior debt for ~400 MW projects, and Believ reaching 2,500 public charging sockets averaging ~GBP 1,500 EBITDA per socket with ~23,000 awarded.
Liberty Blume and Tech/AI Momentum
Liberty Blume delivered >20% revenue growth in 2025, achieving >GBP 100 million revenue with ~GBP 400 million order book and initial valuation GBP 100 million. Company investing in AI (strategic investment in 11 labs) and moving in-house AI capabilities into Growth to commercialize externally.
Capital Allocation Discipline
Maintained disciplined capital allocation: reduced buyback target from 10% to 5% in anticipation of transactions (repurchased 5% of outstanding shares during the year), have a history of significant buybacks (~USD 15 billion over 9 years, shares outstanding down ~63%). Management emphasizes rotating capital into high-return growth/infrastructure assets.
Negative Updates
VMO2 Reported Revenue and EBITDA Declines (Q4 2025)
VMO2 reported a Q4 revenue decline of 5.9% (reported) and adjusted EBITDA decline of 2.4% (reported), driven by lower Nexfibre construction revenues and sustained competitive pressure in U.K. fixed and mobile markets. On a guidance basis (excluding Nexfibre construction and O2 Daisy) management reports modest growth for full year, but 2026 guidance expects total service revenue decline of 3%–5% and adjusted EBITDA decline of 3%–5%.
VodafoneZiggo Revenue and EBITDA Pressure (Q4 2025) and 2026 Guidance Weakness
VodafoneZiggo reported Q4 revenue decline of 2.3% and adjusted EBITDA decline of 3.4% (driven by fixed churn and lower low‑margin IoT revenue). 2026 guidance expects stable to low single-digit revenue decline and mid-to-high single-digit adjusted EBITDA decline owing to OpEx investments into network resilience and commercial initiatives; adjusted free cash flow guidance ~EUR 100m with no shareholder distributions planned for 2026.
Telenet EBITDA Decline and Programming Rights Impact
Telenet reported a Q4 revenue decline of 1.3% and a significant adjusted EBITDA decline of 9.9% due to not renewing Belgium football broadcasting rights and elevated labor, marketing, professional services and outsourced labor spend. 2026 guidance only expects low single-digit adjusted EBITDAaL growth (IFRS guidance excludes Wyre).
Competitive Pressure and Promotional Intensity in U.K. Fixed Market
Management cited sustained promotional intensity and heightened competition in the U.K. fixed consumer market, driving a cautious outlook; Lutz indicated ~70% of VMO2's more conservative guidance is attributed to cautious view on fixed consumer market dynamics.
One-off/Incremental Investments Pressuring Near-term Results
VodafoneZiggo will invest an incremental EUR 100 million of OpEx and CapEx in 2026 (EUR 50 million OpEx impact from 2027) for network resilience and service reliability, which weighs on 2026 EBITDA and free cash flow while aiming to improve medium-term performance.
Contingent and Execution Risks
Wyre committed financing of EUR 4.35 billion is contingent on regulatory approval (BCA). Some debt refinancing activity was paused due to choppy credit markets; management noted discretion in pacing refinancings. Wholesale rate details and certain transaction commercial terms were not disclosed, leaving execution and commercial uptake risk.
Near-term Corporate Cash Reduction and Buyback Pause
Pro forma for announced transactions and expected asset sales, corporate cash is targeted to end 2026 around ~USD 1.5 billion (reduced from USD 2.2 billion at year-end). Management paused active buyback activity early in the year (opportunistic approach going forward).
Company Guidance
Liberty Global’s 2026 guidance was given by operating company: VMO2 (pro forma for the Daisy impact) expects total service revenues to decline 3–5% and adjusted EBITDA to decline 3–5%, with property & equipment additions of GBP 2.0–2.2 billion (ex‑right‑of‑use), adjusted free cash flow of ~GBP 200 million and ~GBP 200 million of shareholder distributions; VodafoneZiggo expects revenue to be stable to a low single‑digit decline, adjusted EBITDA to fall mid‑ to high‑single digits (driven partly by EUR 100 million of incremental OpEx/CapEx in 2026 for network resilience, stepping down to ~EUR 50 million OpEx in 2027–28), capex/revenue of ~23–25%, adjusted free cash flow of ~EUR 100 million and no shareholder distributions; Telenet (IFRS, excluding Wyre) expects stable revenue, low single‑digit adjusted EBITDAaL growth, capex/revenue of ~20% and positive adjusted free cash flow of ~EUR 20 million; Liberty Corporate expects about negative $50 million of adjusted EBITDA. The company reiterated a target to end 2026 with roughly $1.5 billion of corporate cash (pro forma for announced M&A and expected asset disposals), noted a Q4/YE 2025 consolidated cash balance of $2.2 billion, and reported the Liberty Growth portfolio fair market value at about $3.4 billion.Liberty Global B Financial Statement Overview
Summary
Results are weighed down by a sharp TTM profitability breakdown (deep operating loss and ~-51% net margin) despite strong revenue growth. Balance sheet leverage is not extreme (debt ~0.7x equity), and cash flow is a relative strength with positive and improving free cash flow, but the earnings swing (2024 profit to TTM loss) elevates risk.Income Statement
TTM (Trailing-Twelve-Months) shows a sharp deterioration in profitability despite strong revenue growth (~25%): the company generated a deeply negative operating result and a large net loss, with net margins around -51%. This is a major reversal versus 2024, which was modestly profitable with solid gross margins. While gross margin remains healthy in the most recent period, the swing to significant losses suggests elevated costs, impairments, or other large charges, making earnings quality and near-term profitability a key concern.34
Negative
Balance Sheet
Leverage looks manageable on an equity basis with debt at roughly 0.7x equity in TTM (Trailing-Twelve-Months), and the company still reports a sizable equity base. However, returns on equity have turned negative in the latest period, reflecting the large loss, and leverage has been higher in some prior years (notably 2020). Overall, the capital structure is not extreme for the sector, but the recent earnings pressure increases balance-sheet risk if losses persist.56
Neutral
Cash Flow
Cash generation remains a relative bright spot: TTM (Trailing-Twelve-Months) operating cash flow is positive (~$1.2B) and free cash flow is also positive (~$1.45B), with free cash flow growing ~21% versus the prior period. That said, operating cash flow is meaningfully lower than recent historical levels and covers less than half of net income in the latest period (reflecting the net loss), indicating profits and cash flows are not moving in tandem. Still, positive and improving free cash flow provides some financial flexibility.63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.88B | 4.34B | 4.12B | 4.02B | 10.31B |
| Gross Profit | 1.29B | 2.89B | 2.83B | 2.95B | 7.29B |
| EBITDA | 1.07B | 987.90M | 951.90M | 1.27B | 3.65B |
| Net Income | -7.14B | 1.59B | -4.05B | 1.47B | 13.43B |
Balance Sheet | |||||
| Total Assets | 22.60B | 25.44B | 42.09B | 42.90B | 46.92B |
| Cash, Cash Equivalents and Short-Term Investments | 2.16B | 2.15B | 3.64B | 4.35B | 3.18B |
| Total Debt | 10.16B | 9.85B | 10.23B | 15.55B | 16.19B |
| Total Liabilities | 12.65B | 12.90B | 23.08B | 20.32B | 21.32B |
| Stockholders Equity | 9.74B | 12.37B | 19.06B | 22.44B | 25.93B |
Cash Flow | |||||
| Free Cash Flow | -123.00M | 1.12B | 1.24B | 1.95B | 2.14B |
| Operating Cash Flow | 1.22B | 2.03B | 2.17B | 2.84B | 3.55B |
| Investing Cash Flow | -883.90M | 684.70M | -1.84B | 1.28B | -5.80B |
| Financing Cash Flow | -226.10M | -2.25B | -692.40M | -3.28B | -1.55B |
Liberty Global B Technical Analysis
Neutral
10.92
Price Trends
12.20
Positive
11.64
Positive
11.25
Positive
Market Momentum
0.11
Positive
49.04
Neutral
56.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBTYB, the sentiment is Neutral. The current price of 10.92 is below the 20-day moving average (MA) of 13.47, below the 50-day MA of 12.20, and below the 200-day MA of 11.25, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 56.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LBTYB.
Liberty Global B Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $4.14B | -0.56 | ― | ― | ― | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $7.56B | -894.38 | -3.18% | ― | 8.54% | -59.63% | |
58 Neutral | $4.14B | -0.34 | ― | ― | ― | ― | |
58 Neutral | $4.14B | -0.56 | ― | ― | ― | ― | |
56 Neutral | $4.70B | -757.27 | -0.13% | 0.39% | -22.79% | 79.90% | |
55 Neutral | $6.86B | -4.44 | 267.95% | ― | -4.56% | 23.46% |
* Communication Services Sector Average
LBTYB
Liberty Global B
12.80
0.79
6.62%
LUMN
Lumen Technologies
6.70
1.72
34.54%
GSAT
Globalstar
58.77
36.61
165.21%
LBTYA
Liberty Global A
12.48
1.12
9.86%
LBTYK
Liberty Global C
12.20
0.35
2.95%
TDS
Telephone & Data Systems
44.30
9.69
28.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.